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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.SOUNTHAR
New India Assurance Company Ltd – Appellant
Versus
S.Sumathy – Respondent
ORDER :
S.SOUNTHAR, J.
The Writ Petition is filed challenging the award passed by the 3rd respondent directing the petitioner to pay a sum of Rs.1,28,575/- to the 1st respondent herein towards crop damage suffered by her in respect of crops raised by her in Veppankadu Ukkadai Village during the Rabi season of the year 2018-2019, which was covered by petitioner's insurance scheme under Pradhan Mantri Fasal Bima Yojana (hereinafter referred to as 'PMFBY' for brevity).
2. The 1st respondent is a non-loanee farmer, insured her crop raised in the Village of Veppankadu Ukkadai through the 2nd respondent, Nambivayal Primary Agricultural Cooperative Credit Society (hereinafter referred to as 'Nambivayal PACCS' for brevity). The 1st respondent suffered crop damage and at the time of settlement of her claim, it came to her knowledge that at the time of submission of application through 2nd respondent, the name of the Village in which crop was raised was wrongly mentioned as 'Veppankadu' instead of 'Veppankadu Ukkadai'. Under the Crop Assessment Scheme, the loss to the crop in Veppankadu Village was assessed as 14.48% and whereas, the loss to the crops in 'Veppankadu Ukkadai' was assessed as 55.
Insurance companies must ensure accurate data entry by Nodal Banks, as misreporting negatively affects farmers' compensation claims. Competence of grievance mechanisms does not absolve insurers of li....
The Nodal Bank is responsible for accurate data submission in crop insurance claims, and errors leading to compensation discrepancies must be rectified by the bank.
Nodal Banks are liable for misreporting in crop insurance applications, impacting farmer compensation; courts can enforce decisions despite available grievance mechanisms.
Banks under PMFBY are accountable for accurate reporting of insured details, with liability for misreporting leading to claim denials.
Mistake in Data - For the mistake in data, Appellant Bank is liable for compensation.
Farmers cannot be denied insurance claims due to clerical errors by the implementing bank; responsibility lies with the bank to ensure accurate data entry as per scheme guidelines.
Mistake in Data - For the mistake in data, Appellant Bank is liable for compensation.
The rejection of claims by the insurance company was found to be discriminatory, arbitrary, and in violation of Article 14 of the Constitution of India. The State Government was held responsible for ....
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